BUSINESS

Canadian dollar shifts lower as key commodities lose steam on economic concerns

09/24/2012 09:22 EDT | Updated 11/24/2012 05:12 EST
TORONTO - The Canadian dollar weakened on Monday as commodity prices moved lower as questions about the European economy's strength returned to the forefront.

The loonie was down 0.25 of a cent to 102.17 cents US, easing from a half-cent decline earlier in the session, as traders moved into safe havens like the U.S. dollar.

In commodities, November crude on the New York Mercantile Exchange moved down 96 cents to US$91.93 a barrel.

New efforts to revive growth from central banks in Europe, Japan and the U.S. have not been enough to overcome pessimism about the global economy's prospects. When economic growth slows, so does demand for fuel which typically results in lower oil prices.

December bullion decreased $13.40 to US$1,764.60 an ounce. December copper was off nearly six cents to US$3.73 a pound.

The decline of commodities has helped to slow the growth of the Canadian dollar, which surged past parity with the U.S. currency this summer.